(1b) Using named examples, evaluate the economic and political impacts of disruption to energy supply pathways.(15)
(1b) Using named examples, evaluate the economic and political impacts of disruption
to energy supply pathways.(15)
An energy pathway is the route or journey energy takes from the source country to the consuming country. It is often seen that economic and political impacts disrupt energy supply pathways.
To begin with, some countries in the Middle East are quite often recognised as to having political problems such as dictatorships which leads to the formation of unstable regimes. The relationship between the Middle East and western powers like the USA are often quite severed, This proves to be fatal as such countries are reliant upon energy reserves in the Middle East. Hence matters are quite often stretched further when key players such as OPEC represent countries like Saudia Arabia and Iran in the Middle East, as well as determine oil prices. This may place stress upon the USA who suffers from energy insecurity due to its energy deficit and due to its reliance and need for oil may have to face as well as conform to rises in oil prices. As, it is now believed that the control over energy prices is in the hands of the suppliers due to the combination of a lack of energy reserves for finite resources and huge global demand for natural resources.